Under the statutory residence test, there is a relief that can be applied to exclude any day from an individual’s UK day-count that is incurred as a result of ‘exceptional circumstances beyond the control of the individual which prevents them from leaving the UK.’ The number of ‘exceptional’ days is limited to 60 days in the tax year.
Statutory Residence Test
The Statutory Residence Test applies to individuals alive throughout the tax year under consideration
Individuals who may be affected should:
- Ascertain their day count to date for the current tax year (broadly the number of midnights spent in the UK from 6 April to date)
- Consider how they may deal with the situation practically if these exceptional circumstances are likely to last beyond 60 days (this is more likely to be an issue for the 2020/21 tax year which starts on 5 April)
- If it is likely the individual will become UK resident in the next tax year, it may still be possible to carry out certain pre-immigration planning now.
The situation is complex. If you’re affected by any of these issues, Price Bailey can support you with practical advice on the number of days individuals can spend in the UK based on their specific circumstances to ensure that unwanted tax liabilities do not arise.
If you have any questions regarding where you stand with regards to this, or you would like some further support or advice, you can contact our Tax team on the form below.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
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